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5 Examples Of Disruptive Innovation

Five illustrative examples of disruptive innovation.

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5 Examples Of Disruptive Innovation

  1. 1. 5 Examples ofDisruptive Innovation
  2. 2. Christian Sandström holds a PhD from ChalmersUniversity of Technology, Sweden. He writes and speaksabout disruptive innovation and technological change.www.disruptiveinnovation.se
  3. 3. Harvard professorClayton Christensencoined the termdisruptive innovation inhis book ’Theinnovator’s dilemma’,published in 1997.
  4. 4. Harvard professorClayton Christensencoined the termdisruptive innovation inhis book ’Theinnovator’s dilemma’,published in 1997.This presentation givesfive illustrativeexamples of disruptiveinnovation.
  5. 5. A disruptive innovation initially offers a lowerperformance according to what themainstream market has historically demanded.
  6. 6. A disruptive innovation initially offers a lowerperformance according to what themainstream market has historically demanded.At the same time it provides some newperformance attributes, which in turn makes itprosper in a different market.
  7. 7. A disruptive innovation initially offers a lowerperformance according to what themainstream market has historically demanded.At the same time it provides some newperformance attributes, which in turn makes itprosper in a different market.As it improves along the traditionalperformance parameters it eventually displacesthe former technology.
  8. 8. For further detail on this concept, click here:http://www.slideshare.net/Christiansandstrom/disruptive-technologies-an-introduction
  9. 9. Number 1:
  10. 10. The Transistor Radio
  11. 11. Transistor Radio Analogue RadioTraditionalperformanceNewperformance
  12. 12. Transistor Radio Analogue RadioTraditional Worse soundperformanceNewperformance
  13. 13. Transistor Radio Analogue RadioTraditional Worse soundperformanceNew Portableperformance Low Battery consumption
  14. 14. Being portable and offering worse sound quality, thetransistor radio was adopted by teenagers who couldbring music to the beach.
  15. 15. As the soundquality improved,it eventuallydisplaced theanalogue, bigfurniture radios.
  16. 16. Number 2:
  17. 17. Pocket calculators
  18. 18. Pocket calculator Desktop calculatorTraditionalperformanceNewperformance
  19. 19. Pocket calculator Desktop calculatorTraditional Worse computing performanceperformanceNewperformance
  20. 20. Pocket calculator Desktop calculatorTraditional Worse computing performanceperformanceNew Portableperformance
  21. 21. Over time, the computingperformance of these smaller,simpler calculators wasimproved.
  22. 22. As they became cheaper and were sold in larger and largervolumes, sales offices lost their value. Calculators started tobe sold in bookstores and large retail stores.
  23. 23. Number 3:
  24. 24. LCD TV versus Cathod Ray Tube (CRT) TV
  25. 25. LCD TV CRT TVTraditionalperformanceNewperformance
  26. 26. LCD TV CRT TVTraditional Worse image qualityperformanceNewperformance
  27. 27. LCD TV CRT TVTraditional Worse image qualityperformanceNew Low battery consumptionperformance Low weight
  28. 28. LCD screens initially prospered in variousapplications where image quality wasn’t important.
  29. 29. In mobile phones, portable video games and cameras,battery consumption and weight were more important.
  30. 30. When the image quality had become good enough,they displaced CRT TVs in the 2000s.
  31. 31. Number 4:
  32. 32. Integrated steel mills VS minimills.Photo: www.jornmark.se
  33. 33. Minimills Integrated millsTraditionalperformanceNewperformance
  34. 34. Minimills Integrated millsTraditional Worse steel qualityperformanceNewperformance
  35. 35. Minimills Integrated millsTraditional Worse steel qualityperformanceNew Cheaper, easier to produceperformance
  36. 36. The minimill technology used scrap, put it in afurnace and made new steel of it.
  37. 37. The minimill technology used scrap, put it in afurnace and made new steel of it.Cheap, low quality steel.
  38. 38. The minimill technology used scrap, put it in afurnace and made new steel of it.Cheap, low quality steel.The integrated steel companies were morethan happy to get rid of this low-marginbusiness and instead focus on the high-end.
  39. 39. The minimill technology used scrap, put it in afurnace and made new steel of it.Cheap, low quality steel.The integrated steel companies were morethan happy to get rid of this low-marginbusiness and instead focus on the high-end.So they did, but slowly and steadily, theminimill technology offered better steel qualityand captured segment after segment.
  40. 40. Eventually, the integrated steel millsstarted to suffer, badly.
  41. 41. Number 5:
  42. 42. Mobile phones versus regular phones
  43. 43. Cell phone Old phonesTraditionalperformanceNewperformance
  44. 44. Cell phone Old phonesTraditional Worse sound qualityperformance ExpensiveNewperformance
  45. 45. Cell phone Old phonesTraditional Worse sound qualityperformance ExpensiveNew Portableperformance
  46. 46. As mobile phones became cheaper, the soundquality improved and new functions wereadded, it eventually displacedthe analogue phones.
  47. 47. SourcesChristensen, C.M. (1997) The Innovator’sDilemma, Harvard Business School Press,Cambridge, Massachusetts.
  48. 48. Find out more:www.disruptiveinnovation.se

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